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On Our Radar

U.S. Sues BofA for $1B in Mortgage Fraud Suit

The U.S. said Wednesday it is suing Bank of America (BAC) for allegedly “engaging in a scheme to defraud” Fannie Mae and Freddie Mac between 2007 and 2009.

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A press release from the Justice Department said Countrywide, which was bought by BofA in 2008, partook in a scheme that was “intentionally designed to process loans at high speed and without quality checkpoints, and which generated thousands of fraudulent and otherwise defective residential mortgage loans sold to Fannie Mae and Freddie Mac that later defaulted, causing over $1 billion dollars in losses and countless foreclosures.”